THE pound has weakened against both the dollar and the euro in the first week of 2017 but a few crucial steps can help travellers get the best rates and boost spending power abroad.

Sterling fell more than one per cent against the American currency to sit at 1.22 and slipped by 0.4 per cent against the euro to 1.16.

It means £500 can buy around $614 and €583 - but Britons could get far less if they use a provider offering poor rates.

Faced with a weaker pound, it's crucial holidaymakers get the best exchange rate on travel money to make their cash go further when overseas.

Jet-setters will typically get the worst deal buying travel cash at the airport, where rates are among the least competitive. The best exchange are usually offered online, when travellers order online at least a day in advance.

Pick up cash in branch to avoid any delivery charges. The Post Office and Sainsbury’s are money the currency providers that offer better rates if you follow this method.

But the best rates are typically with currency specialists, as oppose to high street retailers. For those based in London, Thomas Exchange Global is competitive option or No1 Currency has collection points in most towns across Britain.

Travel money top tips

Travel money exchange: Top tips to get the best deal on your holiday money.

Credit cards - Some cards are specifically for use overseas and don’t add on extra charges, like the majority do. That said, they are more secure then carrying cash, as if stolen, your credit card issuer can cancel the card

If you're not able to collect the cash, smaller orders are usually subject to delivery charges.

Travellers who have left it late in the day, can still get a better rate if they have at least four hours before arriving at the airport.

Travelex advance rates are competitive and you can pick up money at most UK airports (with the exception of Gatwick and Bristol).

Another option is ICE, which provides special discounted 'Click & Collect' rates that can be secured through an online voucher - or on a smartphone or tablet - and redeemed on the day at points in Ashford, Belfast, Edinburgh, London, Glasgow and Norwich.

Related articles

If you buy foreign currency with a credit card, cash advance fees at around 2.5 per cent may be levied, so use a debit card where possible.

As a general rule, you should avoid using your card to pay for goods or service or take out cash when you’re overseas because of the added fees involved. If you do use your card, it's usually better to pay in the LOCAL currency and not sterling when given the option.

A so-called Dynamic Currency Conversion (DCC) is typically applied at a rate of 4-6 per cent if a cardholder opts to pay in sterling.